Medical centers cut 140 positions
TOWN OF WALLKILL — The Greater Hudson Valley Health System has announced that Catskill Regional Medical Center will lay off the equivalent of 60 full-time positions while Orange Regional Medical Center will lay off the equivalent of 80 full-time positions.
Hospital officials said the layoffs were due to substantial reductions in reimbursement from the federal and state governments as well as other decreases in revenue caused by health care reform.
“While we value every position within the system, we are making every effort to minimize the impact within nursing and departments that provide direct patient care,” Scott Batulis, the president and CEO of the Greater Hudson Valley Health System, said in a press release announcing the layoffs. “It is with heartfelt sadness that our need to reduce staffing has come at a time in which our highly productive workforce is ranked among the top 25 percent in productivity for hospitals across the nation.
“Federal sequestration cuts and other major reimbursement reductions hit hard and fast,” Batulis added. “Without any transition plan or conversion funding that would have allowed us to reduce costs through attrition or other means.”
Less reimbursement, fewer patients
At Catskill Regional, revenue has declined due to government cuts and lower patient volume. The hospital is restructuring and downsizing management and non-nursing areas to reduce expense by $5 million annually, according to the GHVHS press release.
At Orange Regional, expenses for employee wages and benefits, medical supplies and prescription drugs have increased by $12 million with no revenue increase expected due to these direct reimbursement cuts. Therefore, Orange Regional has to reduce costs by $12 million to make up this shortfall, hospital officials said
Five percent of staff
Combined, staffing reductions are 5.0 percent of the Greater Hudson Valley Health System’s total workforce. Prior to the layoffs, there were 720 full-time equivalent positions at Catskill Regional in Harris and 2,075 FTE positions at Orange Regional in the Town of Wallkill.
Hospital officials said there are no plans for further staff reductions.
“We are committed and will work diligently to assist employees directly affected by this reduction in workforce,” Batulis said in the press release. “Our Human Resources Department will review open positions within the System and will also help to research career opportunities at other local healthcare organizations. Career counseling services will also be provided.”
Employee forums are scheduled at both hospitals for employees to voice concerns and ask questions.